Criteria for personal mortgages

Core criteria of the fair trading mark

1. The product or service must be fairly traded and honestly priced.
a. The provider must follow the spirit of the FCA’s rules and principles with an emphasis on treating customers fairly.
b. Material profit must be made only from positive aspects of the customer journey.  Any extra fees or charges must be designed only to cover additional costs and not to generate material profits. 

PANA criteria and clarifications:

2. Communications and charging structures must be clear, fair and not misleading; with material benefits other than costs and charges being declared to the customer.
3. The product must not discriminate against new or existing customers, although separate incentives can be offered by the company to new or loyal customers.
4. Where applicable non-FCA-regulated products must be treated in the same way as FCA regulated ones.
5. The mortgage must have a maximum loan to value of [95%] or less .
6. The product must not charge termination fees if exited normally, unless required to treat other customers fairly.
7. The product must have a fair interest rate: when an offer or fixed-term period ends, the customer must be charged the best relevant floating rate open to existing customers.
8. Non-business customers must be able to overpay their mortgages without charge by [10%] per year.
9. The provider must be fair to holders of underperforming mortgages.
a. The provider must inform customers that they can get free debt advice.
b. The provider must add nothing by way of fees and costs to customers’ restructured mortgage payments.
c. The provider must commit to the voluntary agreement on mortgage prisoners run by UK Finance.
10. The provider must be fair to customers facing repossession.
a. The provider must have given a grace period of at least 3 months and must have tried to agree an affordable repayment plan with the customer by seeking to contact them on numerous occasions and via different channels.
b. The provider must follow the criteria of FairLife’s Debt Recovery Mark (below) in relation to any mortgage shortfall:
a. Inform the customer that they can get free debt advice.
b. Add nothing by way of interest, fees and costs to customers’ in debt recovery (with the exception of court fees and costs).
c. Where applicable treat non-FCA-regulated debt in the same manner as FCA regulated debt.
d. Include these instructions as part of the transaction if the debt is sold or passed on (unless passed to a FairLife debt recovery firm).
Criteria 10b can be achieved easily by passing the debt to a FairLife debt recovery firm.

To download a summary of the mark click here

To download a licence for the mark click here

The FairLife Mark is a mark of integrity that can, at the charity's discretion, be awarded based on the provider’s own declarations.  The licensee may use the mark on selected products and cancel at any time.